Who Buys Land Notes in Texas? Finding the Right Buyer

If you hold a promissory note secured by Texas land and you are thinking about selling, one of the first questions that arises is who actually buys these things? It is a natural question because the secondary note market is not something most people encounter in their daily financial lives. You will not find land note buyers advertising on television or setting up booths at your local farmer's market. Yet the market for Texas land notes is active, liquid, and populated by a range of buyers who collectively purchase billions of dollars' worth of promissory notes every year across the country, with Texas being one of the most active states.

Understanding who buys land notes in Texas — and equally important, what distinguishes a good buyer from a bad one — is essential knowledge for anyone considering a note sale. The type of buyer you choose affects not just the price you receive but also the certainty of closing, the speed of the transaction, the professionalism of the process, and how your borrower will be treated after the sale. Choosing the wrong buyer can result in a frustrating experience marked by lowball offers, broken promises, and wasted time. Choosing the right buyer can result in a smooth, efficient transaction that puts fair-market cash in your hand within a matter of weeks.

This guide will introduce you to the different types of note buyers operating in the Texas market, explain how each type operates, highlight the advantages and disadvantages of working with each, and give you practical criteria for evaluating and selecting the best buyer for your specific note. By the end, you will have a clear picture of the buyer landscape and the tools you need to find the right partner for your note sale.

The Types of Note Buyers in the Texas Market

Direct Buyers — Companies That Purchase Notes With Their Own Capital

Direct note buyers are companies or individuals that purchase promissory notes using their own funds. When you sell to a direct buyer, the transaction is between you and the buyer — there is no middleman, no broker commission, and no third party that needs to approve the deal. Direct buyers have their capital committed and ready to deploy, which means they can move quickly from quote to closing and can make firm offers without needing to shop your note to other investors for approval.

The advantages of working with a direct buyer are significant. Because they use their own money, they have full control over the purchasing decision and can close deals on their own timeline. There are no broker commissions eating into your proceeds, so the price the buyer quotes is the price you receive. And because direct buyers build long-term businesses around their purchasing activity, they tend to have established processes, experienced teams, and strong reputations that they protect carefully. A direct buyer whose livelihood depends on their reputation in the Texas market has every incentive to treat you fairly and to close the deals they commit to.

Longhorn Note Buyers is a direct buyer that has been purchasing Texas land notes since 2007. With over $46 million in Texas notes purchased using their own capital and a 100% close rate on quoted deals, Longhorn exemplifies the advantages of working with a direct buyer — competitive pricing, certainty of closing, and a streamlined process from start to finish. When you sell to Longhorn, you are working with the actual investor who will hold your note, not a middleman who needs to find someone else to fund the deal.

Note Brokers — Middlemen Who Connect Sellers With Buyers

Note brokers are intermediaries who do not purchase notes with their own capital but instead connect note sellers with note buyers and earn a commission on the transaction. When you work with a broker, the broker collects your note information, shops it to their network of buyers, obtains offers on your behalf, and earns a fee — typically a percentage of the purchase price — when the deal closes. Brokers can be individuals or small firms, and their value proposition is that they have access to a network of buyers that you might not be able to reach on your own.

The advantages of working with a broker include the potential to access multiple buyers through a single point of contact and the benefit of the broker's knowledge of the market. However, there are significant disadvantages. The broker's commission reduces the net amount you receive, sometimes by several percentage points. The deal is not done until the broker finds a buyer who agrees to the price and actually closes, which introduces uncertainty and can extend the timeline. And because the broker is a middleman, communication can be slower and less direct than working with the actual buyer. If speed, certainty, and maximum proceeds are your priorities, selling directly to a buyer is usually the better choice.

Institutional Buyers and Fund Managers

At the larger end of the market, institutional buyers and fund managers purchase notes as part of diversified investment portfolios. These entities might include private equity funds, hedge funds, family offices, and real estate investment companies that allocate a portion of their capital to note investments. Institutional buyers tend to focus on larger transactions — portfolios of notes or individual notes with remaining balances of $100,000 or more — and their purchasing criteria are often more standardized and rigid than those of smaller direct buyers.

If you hold a single land note with a modest remaining balance, you are unlikely to deal with an institutional buyer directly. However, your note may eventually end up in an institutional portfolio if the direct buyer who purchases it later sells it as part of a bundle. For most individual note sellers in Texas, the institutional market is not directly relevant, but it is worth knowing that it exists because it provides liquidity to the overall market and helps support the pricing that direct buyers and brokers can offer.

Individual Investors and Self-Directed IRA Buyers

A growing segment of the note buying market consists of individual investors who purchase promissory notes as an alternative investment, often through self-directed individual retirement accounts. These investors are attracted to the relatively high yields that land notes offer compared to traditional fixed-income investments like bonds or certificates of deposit. Some individual investors purchase notes directly from sellers, while others work through brokers or online note marketplace platforms.

Selling to an individual investor can work well if the investor is experienced and has the capital ready to close. However, individual investors sometimes lack the professional infrastructure — legal teams, servicing operations, title company relationships — that established note buying companies have. This can make the due diligence and closing process slower and less efficient. If you are considering selling to an individual investor, make sure they have the experience and resources to complete the transaction and that they are not relying on financing that could fall through at the last minute.

What Makes a Good Note Buyer — The Criteria That Matter

Experience in the Texas Land Market

Texas land is a specialized market with its own dynamics, legal frameworks, and valuation challenges. A buyer who has deep experience purchasing notes secured by Texas land will understand the nuances of Texas property law, the characteristics of different Texas land markets, and the factors that drive land values across the state's diverse geography. This expertise translates into more accurate pricing, fewer surprises during due diligence, and a smoother overall process.

A buyer who primarily purchases notes in other states or who handles only residential mortgage notes may not have the specific knowledge needed to evaluate your Texas land note accurately. They may apply overly conservative valuations because they are unfamiliar with the local market, or they may encounter issues during due diligence that an experienced Texas buyer would have anticipated. When evaluating potential buyers, ask about their specific experience with Texas land notes — how many they have purchased, how long they have been active in the Texas market, and what types of Texas land they have experience with. To understand the full range of factors that experienced buyers evaluate, this resource on what determines note value in Texas provides useful context.

Close Rate — The Most Important Metric You Can Ask About

A buyer's close rate — the percentage of deals they quote that actually close at or near the quoted price — is arguably the single most important metric for evaluating a note buyer. A high close rate indicates that the buyer does thorough analysis before making an offer, stands behind their quotes, and has the capital and infrastructure to complete transactions reliably. A low close rate may indicate that the buyer makes aggressive initial offers to attract sellers and then renegotiates downward during due diligence, or that the buyer lacks the capital to fund all the deals they commit to.

Longhorn Note Buyers maintains a 100% close rate on quoted deals, which means that when Longhorn gives you a price, you can trust that the deal will close at that price. This level of reliability is rare in the note market and is the result of thorough upfront analysis, conservative but fair pricing, and a capital base that supports every commitment. When you compare offers from multiple buyers, factor in their close rates as heavily as you factor in the quoted prices — a slightly lower offer from a buyer with a perfect close rate may be worth more to you than a higher offer from a buyer who frequently fails to close.

Transparency and Communication

A good note buyer is transparent about how they price notes, what their process involves, and what you can expect at each stage of the transaction. They explain their offer clearly, answer your questions without evasion, and keep you informed throughout the due diligence and closing process. If a buyer is vague about their pricing methodology, unwilling to explain the discount they are applying, or slow to communicate during the transaction, those are warning signs.

Transparency extends to fees and costs as well. A reputable buyer will provide an all-in price with no hidden fees — the number they quote is the number you receive at closing. If a buyer mentions processing fees, due diligence fees, or other deductions that were not part of the original quote, ask for a detailed breakdown and compare the net proceeds to what other buyers are offering. Fees that are sprung on you at closing are a red flag that suggests the buyer is not operating in good faith.

Reputation and Third-Party Validation

Check the buyer's reputation before committing to a deal. Look for Better Business Bureau ratings, online reviews, testimonials from other note sellers, and any industry affiliations or certifications. A buyer with an A+ BBB rating and a history of satisfied clients is a much safer bet than a buyer with no online presence or negative reviews. Ask the buyer for references from other Texas note sellers they have worked with, and take the time to call those references to ask about their experience.

Longhorn Note Buyers has earned an A+ rating with the Better Business Bureau and has built a reputation over nearly two decades of honest, professional note purchasing in Texas. When you choose a buyer with this level of third-party validation, you can proceed with confidence that the transaction will be handled with integrity. For a broader discussion of how to choose between different types of buyers, this article on direct buyers versus brokers for land notes in Texas offers a detailed comparison.

Red Flags to Watch For When Evaluating Buyers

Unrealistically High Initial Offers

If a buyer's initial offer seems too good to be true, it probably is. Some buyers use an intentionally inflated initial quote to lock you in — you stop talking to other buyers, you get emotionally committed to the higher number — and then the buyer reduces the offer during due diligence, citing issues that they claim to have discovered. By the time the re-trade happens, you have invested weeks in the process and may feel pressured to accept the lower number rather than starting over with a new buyer. This bait-and-switch tactic is one of the most common complaints in the note selling market.

To protect yourself, get quotes from at least two or three buyers and be skeptical of any offer that is significantly higher than the others. If one buyer is offering ninety percent of the remaining balance and two others are offering seventy-five to eighty percent, the ninety percent offer is probably not sustainable. Ask the high-bidding buyer whether their offer is firm and whether there are any conditions or contingencies that could change the price. A legitimate buyer will be upfront about any conditions, while a bait-and-switch buyer will minimize or dismiss them.

Pressure to Sign Quickly

A reputable buyer will give you time to evaluate their offer, ask questions, and compare it to other options. If a buyer pressures you to sign a purchase agreement immediately — claiming the offer will expire, that another buyer is interested, or that the price will go down if you wait — that pressure is a red flag. Legitimate offers do not evaporate overnight, and a buyer who pressures you is likely trying to prevent you from discovering that better options are available.

Take the time you need to make an informed decision. A good buyer will respect your process and will be available to answer questions whenever you are ready. The note selling decision is a significant financial transaction, and you deserve to make it on your own terms and timeline.

Lack of Texas-Specific Knowledge

If the buyer does not seem familiar with Texas land markets, Texas property law, or the specific type of land that secures your note, that lack of knowledge is a concern. It suggests the buyer may not be able to evaluate your note accurately, which can lead to pricing surprises during due diligence. A buyer who asks detailed questions about your collateral, demonstrates familiarity with the county where the property is located, and shows understanding of the factors that drive Texas land values is a buyer who can price your note with confidence — and a confident buyer is more likely to stand behind their offer all the way to closing.

How to Find the Right Buyer for Your Note

Start With a Direct Buyer Who Specializes in Texas

The most efficient path to a successful note sale is to start by contacting a direct buyer who specializes in Texas land notes. A Texas-focused direct buyer like Longhorn Note Buyers can provide a competitive offer quickly, explain their pricing transparently, and close the deal using their own capital without middleman delays or commissions. Request a quote, evaluate the offer, and use it as your baseline for comparison if you choose to explore other options.

Get Multiple Quotes for Comparison

Even if you are impressed by the first offer you receive, getting two or three quotes gives you valuable market information and negotiating leverage. When comparing quotes, look at the net proceeds you will receive after any fees, the buyer's close rate and reputation, the expected timeline for closing, and whether the buyer is a direct purchaser or a broker. The lowest-priced quote from a reliable direct buyer may be more valuable than a higher-priced quote from a broker with uncertain funding or a buyer with a history of re-trades.

Ask the Right Questions

Before committing to a buyer, ask questions that reveal their reliability and expertise. How many Texas land notes have you purchased? What is your close rate on quoted deals? Are you a direct buyer or a broker? Do you charge any fees beyond the quoted purchase price? How long will the process take from quote to funding? Can you provide references from other Texas note sellers? The answers to these questions will help you separate the serious, experienced buyers from the less reliable ones, and they will give you the confidence to move forward with the right partner. For broader guidance on avoiding pitfalls during the selling process, this article on common mistakes when selling a land note in Texas offers practical advice.

Ready to Sell Your Note?

Now that you know who buys land notes in Texas and what to look for in a buyer, the next step is to get a quote and see what your note is worth. Longhorn Note Buyers has been purchasing Texas land notes since 2007, with over $46 million in notes purchased using their own capital and a perfect 100% close rate on quoted deals. As a direct buyer with nearly two decades of exclusive focus on the Texas market, Longhorn offers competitive pricing, fast closings, and the certainty that your deal will close as quoted — no middlemen, no broker commissions, and no bait-and-switch surprises.

Call Longhorn Note Buyers today at (210) 828-3573 or visit longhornnotebuyers.com to request your free, no-obligation quote. Whether your note is a perfect performer or one with some challenges, Longhorn's experienced team will evaluate it fairly and provide a transparent offer that reflects its true market value. With an A+ Better Business Bureau rating and a reputation built on trust, Longhorn Note Buyers is the right partner for your Texas land note sale.

Frequently Asked Questions About Who Buys Land Notes in Texas

Is it better to sell to a direct buyer or a broker?

For most note sellers, a direct buyer offers significant advantages over a broker. Direct buyers use their own capital, which means faster closings, no broker commissions, and more certainty that the deal will close. Brokers can be useful if you have an unusual note that requires access to a wide network of potential buyers, but for the majority of Texas land notes, a direct buyer provides the best combination of price, speed, and reliability. The key is to compare your net proceeds — the amount you actually receive after all fees and commissions — rather than just the headline offer.

How many buyers should I get quotes from?

Getting quotes from two to three buyers is generally sufficient to understand the market range for your note and to identify the best offer. You do not need to contact a dozen buyers — the additional effort yields diminishing returns after the first few quotes. Focus on reputable direct buyers with Texas-specific experience, and use the quotes to compare not just price but also close rate, timeline, reputation, and transparency. A slightly lower offer from a buyer with a perfect close rate and a twenty-year track record in Texas may be worth more than a slightly higher offer from an unknown buyer with no track record.

Can I sell my note to someone I know personally?

Yes, you can sell your promissory note to any willing buyer, including someone you know personally. If a friend, family member, or business associate is interested in purchasing your note as an investment, the transaction would follow the same general process — quote, due diligence, closing — as a sale to a professional buyer. However, it is advisable to have the transaction handled by a professional — a title company or real estate attorney — to ensure the assignment documents are properly prepared and recorded and that both parties' interests are protected.

Do note buyers also buy the land itself?

Most note buyers specialize in purchasing promissory notes and are not in the business of buying real estate directly. When a note buyer purchases your note, they are buying the right to receive the borrower's payments — they are not buying the land. If you own land that you want to sell outright, you would typically work with a real estate agent or a land buyer rather than a note buyer. However, if you own both the land and a note on a separate property, the note buyer can purchase the note while you sell the land through a separate transaction.

What happens if the buyer I choose goes out of business after purchasing my note?

Once you sell your note and receive your cash, the transaction is complete and your proceeds are not affected by what happens to the buyer in the future. If the buyer later goes out of business, the note would become an asset of their estate or business entity and would typically be sold to another investor as part of a liquidation process. The borrower would be notified of any subsequent change in note ownership and would simply redirect their payments to the new holder. From your perspective as the original seller, the sale is final at closing and you have no ongoing exposure to the buyer's business fortunes.